Expedia throws a wrinkle into travel packages

Saying that 46% of U.S. travelers prefer to book their
flight and hotel separately, Expedia will enable customers to book discounted
hotels after they purchase their airfare on Expedia.

Expedia on Wednesday will introduce Expedia Add-On
Advantage, enabling customers to essentially create a travel package without
having to buy the components at the same time. The hotel can be booked any time
before their trip begins.

Aaron Price, senior vice president of global marketing for
Brand Expedia, called booking a package "a great way to save," but
that booking the components at the same time "requires more planning and
money up front than adding on a hotel at a later date."

"We want to alleviate that pressure so travelers can
take their time researching neighborhoods, comparing hotel amenities, reading
guest reviews, etc. So our rationale for the Add-On Advantage is really an
adjustment to our current offering with the aim to better serve travelers,"
he said.

Price said that Add-On Advantage customers will save an
average of 43%.

Expedia's television campaign this summer will feature
Expedia Add-On Advantage, and it will also be highlighted in digital marketing.

Price said the program creates a competitive advantage for
Expedia.

"The travel industry is a very broad landscape, and I
would say through the research that I've done, it doesn't seem like anyone else
has [a program like] this," he said.